The Commodity Futures Trading Commission (CFTC) secured a court order on January 6, 2026, dismissing Fundsz as a defendant from its ongoing commodities fraud lawsuit. This action, following a CFTC motion filed the previous day, streamlines the case against the remaining individual defendants linked to the alleged crypto Ponzi scheme.
The Commission informed the court that its claims against the individual defendants were "nearly resolved." Fundsz itself operated as an unincorporated association, functioning through a now-defunct website-based platform. The entity had made no legal appearance or filings in the action, nor had it incurred any expenses for its defense.
All other defendants in the case, along with the court-appointed Receiver, raised no objections to Fundsz's dismissal. This marks the CFTC's second successful attempt to remove the entity from the litigation. An earlier motion to dismiss Fundsz, submitted in October 2025, had been denied by the court. The lack of active participation by Fundsz likely played a role in the court's subsequent decision.
Fundsz originated as an alleged multi-level marketing (MLM) crypto Ponzi scheme, launched in 2020 by Rene Larralde. Such schemes often entice investors with promises of outsized returns, primarily funded by money from new participants rather than legitimate business operations, while rewarding early investors and recruiters. The CFTC initially filed its suit in July 2023, naming Fundsz, Larralde, Alisha Kingrey, and Brian Early as defendants.
The lawsuit alleged widespread commodities fraud. Larralde died in late 2023, leading his daughter, Rachel, to represent his estate in the subsequent CFTC proceedings. Separately, Larralde's estate and defendant Juan Pablo Valcarce finalized settlements with the CFTC last year.
Legal proceedings against defendants Alisha Kingrey and Brian Early remain active. The CFTC continues to pursue accountability and potential restitution from these individuals, focusing on their alleged roles in the fraudulent enterprise.
Individuals who believe they have been victims of commodity fraud can report incidents and find assistance through the CFTC's website at cftc.gov/complaint.